Kaiser Partner Privatbank invests during Coronavirus Year and continues Path of Growth
2020 was a special year also for Kaiser Partner Privatbank, accompanied by many challenges and opportunities. Our clients continued to place their trust in us even during one of the greatest crises of recent history. Despite the difficult environment, organic growth allowed client assets to grow by CHF 0.3 billion (+6%) to CHF 5 billion. In addition, the private bank was able to achieve excellent performance for its clients in asset management in markets that were volatile and torn by crises.
Total revenues grew by 9% to CHF 27.2 million in 2020. Commission and service income contributed roughly CHF 16.6 million to this, the same level as the previous year, and financial transactions contributed CHF 5.6 million (+33%). In the interest business, the Bank suffered a decline of 15% to CHF 4.6 million due to the cyclical interest rate cuts in March 2020 of approximately 2% by central banks, in particular by the Federal Reserve (Fed). With increased investments in digital initiatives and personnel as well as additional costs associated with the pandemic, operating expenses rose by 20% to CHF 21.1 million. This meant that net income for the year fell by CHF 2 million (previous year CHF 4 million).
Due to strong organic growth, profitability had already improved significantly in the second half of the year, and we expect earnings growth to continue from pre-crisis levels in 2021 and in the coming years.